Unused Credit Cards

A_Frayed_Knot · 22 January 2020 at 6:10PM

Going through mountainous paperwork and found a few C/C that have never been used (probably when opening an account with the bank they asked if I wanted one !!!) and just took it, another
the 0% finished but still sent me a new one. A bit green when it comes to C/C's.

I do have C/C that I do use carefully

but was wondering whether its any way harmful to
my credit rating to have more cards than I need and use.

Should I get rid of all I do not need and use? Or is there some advantage to having these cards
(not on 0%) which is why they are never used.

yksi · 22 January 2020 at 7:12PM

It might be good to keep them (nice concise answer). The reasons include that long credit agreements (accounts open a long time) demonstrate stability. The total credit availability across all your cards and loans is also a thing, and ideally you want to have a low utilisation as a % of total credit - so having more cards can, possibly, make that percentage lower. Having said that, ideally you would be using them all even just for a small transaction each month, which you wait for the statement then pay in full. But they probably aren't hurting anything.

One small thing to note is that if your total availability is rather high compared with your income, this can sometimes make lenders wary.

Are you planning on taking out a loan, a new credit agreement, or a mortgage in the near future?

A_Frayed_Knot · 22 January 2020 at 9:16PM

Thanks yksi,

Not thinking about a loan, or mortgage :think:

just cleared my mortgage end of 2018 :)but may think about a balance transfer or new card with 0% for a nice long period.

Nothing decided yet.

[Deleted User] · 22 January 2020 at 9:51PM

I've now accumulated 15 (yes, that's right, 15) credit cards. Three are used regularly, one has just come off the 0% deal and has yet to be used, and I use each of the rest once every six months for a small purchase (keeping a record to ensure I use them). I just can't seem to get rid of them :j

A_Frayed_Knot · 24 January 2020 at 11:00AM

I'm thinking along the lines, the C/C's that are not on 0% are only good for small purchases as you pay within the month.

I have one C/C on 0% but all money to pay this is in the bank. I just pay the 1% plus a little extra each month.

So thought if I go for another 0% C/C then the amount available would not be as much as I have the limits on the cards I do not use. If I didn't have them, then the amount available to me, would be more (if that makes sense). Plus I do not earn as much as I used to due to going part time now.

Am I thinking along the correct lines?

Unused Credit Cards

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